News Release
<< Back View printer-friendly version
Final Results: Full-Year 2018 Results
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
FOR IMMEDIATE RELEASE
Worldpay Reports Fourth Quarter and Full-Year 2018 Results
Accelerating Growth Highlights Successful First Year for
"The high rates of organic growth and the continued acceleration in technology solutions shows the power of our strategy," said
(unaudited) (in millions, except share data) |
|||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
||||||
|
|
|
|
|
% Change |
|
Pro Forma(2) % Change |
|
Pro Forma(2) CC % Change |
||||
Net revenue |
$ |
1,050.0 |
|
|
$ |
569.0 |
|
|
85% |
|
9% |
|
10% |
Technology Solutions |
443.7 |
|
|
225.5 |
|
|
97% |
|
20% |
|
21% |
||
Merchant Solutions |
516.1 |
|
|
258.2 |
|
|
100% |
|
2% |
|
3% |
||
Issuer Solutions |
90.2 |
|
|
85.3 |
|
|
6% |
|
4% |
|
4% |
||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
531.3 |
|
|
$ |
281.7 |
|
|
89% |
|
|
|
|
Adjusted. EBITDA Margin |
50.6 |
% |
|
49.5 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
GAAP Net income (loss) attributable to |
$ |
110.5 |
|
|
$ |
(59.7 |
) |
|
NM |
|
|
|
|
GAAP Net income (loss) per diluted share attributable to |
$ |
0.36 |
|
|
$ |
(0.37 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income attributable to |
$ |
352.1 |
|
|
$ |
173.7 |
|
|
103% |
|
|
|
|
Adjusted net income per share attributable to |
$ |
1.12 |
|
|
$ |
0.97 |
|
|
15% |
|
|
|
|
(1) 2017 actuals include
(2) Illustrates what the combined results would have been had the
Fourth Quarter Adjusted EBITDA
For the fourth quarter, adjusted EBITDA was
Full-Year Results
For the full-year 2018, net revenue increased 85% to
(unaudited) (in millions, except share data) |
|
|
|
|
|
|
|
|
|||||
|
Year Ended |
|
|
|
|
|
|
||||||
|
|
|
|
|
% Change |
|
Pro Forma(2) % Change |
|
Pro Forma(2) CC % Change |
||||
Net revenue |
$ |
3,925.4 |
|
|
$ |
2,123.3 |
|
|
85% |
|
10% |
|
9% |
Technology Solutions |
1,601.4 |
|
|
809.6 |
|
|
98% |
|
21% |
|
20% |
||
Merchant Solutions |
1,976.2 |
|
|
977.9 |
|
|
102% |
|
4% |
|
3% |
||
Issuer Solutions |
347.8 |
|
|
335.8 |
|
|
4% |
|
1% |
|
1% |
||
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
1,895.1 |
|
|
$ |
1,018.0 |
|
|
86% |
|
|
|
|
Adjusted. EBITDA Margin |
48.3 |
% |
|
47.9 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
GAAP Net income attributable to |
$ |
12.8 |
|
|
$ |
130.1 |
|
|
(90)% |
|
|
|
|
GAAP Net income per diluted share attributable to |
$ |
0.04 |
|
|
$ |
0.80 |
|
|
(95)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income attributable to |
$ |
1,246.7 |
|
|
$ |
641.1 |
|
|
94% |
|
|
|
|
Adjusted net income per share attributable to |
$ |
4.05 |
|
|
$ |
3.37 |
|
|
20% |
|
|
|
|
(1) 2017 actuals include
(2) Illustrates what the combined results would have been had the
Full-Year Adjusted EBITDA
For the full-year 2018, adjusted EBITDA was
Debt Repayment
During the three months ended
Having honored its commitment to focus exclusively on debt repayment until it reached 4.0x leverage, the company returned to its historical capital allocation priorities, which include investing for growth, both organically and through M&A, balanced with ongoing debt repayment and share repurchases.
Consistent with its capital allocation priorities, Worldpay repurchased approximately 1.8 million shares for
In
(in millions, except share data) |
|||||||
|
First Quarter Outlook |
|
Full-Year Outlook |
||||
|
Three Months Ended |
|
Year Ended |
||||
|
2019 Outlook |
|
2018 Actuals(1) |
|
2019 Outlook |
|
2018 Actuals(1) |
Net revenue |
|
|
|
|
|
|
|
GAAP Net income per diluted share attributable to |
|
|
|
|
|
|
|
Adjusted net income per share |
|
|
|
|
|
|
|
(1)
ASC 606
Worldpay adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC 606"), effective January 1, 2018. Under ASC 606, Network fees and other costs are now netted against Revenue and no longer appear as an expense between Revenue and Net revenue as they were shown in prior periods. As a result, Revenue and Net revenue are now equivalent. This change in presentation reduces Revenue by the amount of Network fees and other costs to an amount equivalent to Net revenue, but has no impact on Net income, Adjusted net income, or Adjusted EBITDA.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss the fourth quarter and full-year 2018 financial results today at
Non-GAAP and Pro Forma Financial Measures
This earnings release presents non-GAAP and pro forma financial information including net revenue, adjusted EBITDA, Underlying EBITDA, adjusted net income, and adjusted net income per share. These are important financial performance measures for the Company, but are not financial measures as defined by GAAP. The presentation of this financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP and adjusted financial performance measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules.
Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements including any statements regarding guidance and statements of a general economic or industry specific nature. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "should," "can have," "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this release are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond our control) and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual future performance or results and cause them to differ materially from those anticipated in the forward-looking statements. Certain of these factors and other risks are discussed in the company's filings with the
Any forward-looking statement made by us in this release speaks only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
CONTACTS
Investors
Investor Relations
(866) 254-4811
(513) 900-4811
Media
Corporate Communications
(513) 900-5308
Andrew.Ciafardini@worldpay.com
Schedule 1
Consolidated Statements of Income
(Unaudited)
(in millions, except share data)
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
||||||||||
Total revenue |
$ |
1,050.0 |
|
|
$ |
1,065.9 |
|
|
NM |
|
$ |
3,925.4 |
|
|
$ |
4,026.5 |
|
|
NM |
||
Network fees and other costs(1) |
- |
|
|
496.9 |
|
|
NM |
|
- |
|
|
1,903.2 |
|
|
NM |
||||||
Net revenue(1) |
1,050.0 |
|
|
569.0 |
|
|
85 |
% |
|
3,925.4 |
|
|
2,123.3 |
|
|
85 |
% |
||||
Sales and marketing |
286.5 |
|
|
172.4 |
|
|
66 |
% |
|
1,131.7 |
|
|
669.5 |
|
|
69 |
% |
||||
Other operating costs |
182.6 |
|
|
84.4 |
|
|
116 |
% |
|
698.0 |
|
|
318.7 |
|
|
119 |
% |
||||
General and administrative |
134.5 |
|
|
105.5 |
|
|
27 |
% |
|
662.1 |
|
|
295.1 |
|
|
124 |
% |
||||
Depreciation and amortization |
271.0 |
|
|
81.5 |
|
|
233 |
% |
|
1,095.0 |
|
|
318.5 |
|
|
244 |
% |
||||
Income from operations |
175.4 |
|
|
125.2 |
|
|
40 |
% |
|
338.6 |
|
|
521.5 |
|
|
(35 |
)% |
||||
Interest expense-net |
(74.6 |
) |
|
(43.2 |
) |
|
73 |
% |
|
(304.9 |
) |
|
(140.6 |
) |
|
NM |
|||||
Non-operating (expense) income(2) |
(7.7 |
) |
|
419.1 |
|
|
NM |
|
(41.8 |
) |
|
432.8 |
|
|
NM |
||||||
(Loss) income before applicable income taxes |
93.1 |
|
|
501.1 |
|
|
(81 |
)% |
|
(8.1 |
) |
|
813.7 |
|
|
NM |
|||||
Income tax (benefit) expense(3) |
(22.7 |
) |
|
547.5 |
|
|
NM |
|
(27.7 |
) |
|
631.0 |
|
|
NM |
||||||
Net income (loss) |
115.8 |
|
|
(46.4 |
) |
|
NM |
|
19.6 |
|
|
182.7 |
|
|
(89 |
)% |
|||||
Less: Net income attributable to non-controlling interests |
(5.3 |
) |
|
(13.3 |
) |
|
NM |
|
(6.8 |
) |
|
(52.6 |
) |
|
NM |
||||||
Net income (loss) attributable to |
$ |
110.5 |
|
|
$ |
(59.7 |
) |
|
NM |
|
$ |
12.8 |
|
|
$ |
130.1 |
|
|
(90 |
)% |
|
Net income (loss) per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.37 |
|
|
$ |
(0.37 |
) |
|
NM |
|
$ |
0.04 |
|
|
$ |
0.81 |
|
|
(95 |
)% |
|
Diluted(4) |
$ |
0.36 |
|
|
$ |
(0.37 |
) |
|
NM |
|
$ |
0.04 |
|
|
$ |
0.80 |
|
|
(95 |
)% |
|
Shares used in computing net income (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
300,728,982 |
|
|
161,554,183 |
|
|
|
|
292,992,892 |
|
|
161,293,062 |
|
|
|
||||||
Diluted |
303,068,119 |
|
|
161,554,183 |
|
|
|
|
295,214,282 |
|
|
162,807,146 |
|
|
|
|
(1) Based on the Company's adoption of Accounting Standard Update 2014-09, Revenue From Contracts With Customers (Topic 606) ("ASC 606") effective
(2) Non-operating expense for the year ended
(3) Income tax expense for the three months and year ended
(4) Due to our structure as a C corporation and
Schedule 2
Adjusted Net Income
(Unaudited)
(in millions, except share data)
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2018 |
|
2017 |
|
%Change |
|
2018 |
|
2017 |
|
% Change |
||||||||||
Income (loss) before applicable income taxes |
$ |
93.1 |
|
|
$ |
501.1 |
|
|
(81 |
)% |
|
$ |
(8.1 |
) |
|
$ |
813.7 |
|
|
NM |
|
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transition, acquisition and integration costs(1)(2) |
59.1 |
|
|
62.2 |
|
|
(5 |
)% |
|
336.7 |
|
|
130.1 |
|
|
159 |
% |
||||
Share-based compensation(2) |
25.8 |
|
|
12.8 |
|
|
102 |
% |
|
124.8 |
|
|
47.9 |
|
|
161 |
% |
||||
Intangible amortization(2)(3) |
223.4 |
|
|
56.3 |
|
|
297 |
% |
|
938.4 |
|
|
217.8 |
|
|
331 |
% |
||||
Non-operating expense (income)(4) |
7.7 |
|
|
(419.1 |
) |
|
NM |
|
41.8 |
|
|
(432.8 |
) |
|
NM |
||||||
Non-GAAP adjusted income before applicable income taxes |
409.1 |
|
|
213.3 |
|
|
92 |
% |
|
1,433.6 |
|
|
776.7 |
|
|
85 |
% |
||||
Less: Adjustments |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted tax expense(5) |
56.2 |
|
|
39.0 |
|
|
44 |
% |
|
184.9 |
|
|
133.8 |
|
|
38 |
% |
||||
Adjusted tax rate |
14 |
% |
|
18 |
% |
|
|
|
13 |
% |
|
17 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other(6) |
0.8 |
|
|
0.6 |
|
|
33 |
% |
|
2.0 |
|
|
1.8 |
|
|
11 |
% |
||||
Adjusted net income |
$ |
352.1 |
|
|
$ |
173.7 |
|
|
103 |
% |
|
$ |
1,246.7 |
|
|
$ |
641.1 |
|
|
94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income per share |
$ |
1.12 |
|
|
$ |
0.97 |
|
|
15 |
% |
|
$ |
4.05 |
|
|
$ |
3.37 |
|
|
20 |
% |
Adjusted shares outstanding(7) |
313,320,945 |
|
|
178,625,196 |
|
|
|
|
307,912,163 |
|
|
190,052,282 |
|
|
|
Non-GAAP and Adjusted Financial Measures
This schedule presents non-GAAP and adjusted financial measures, which are important financial performance measures for the Company, but are not financial measures as defined by GAAP. Such financial measures should not be considered as alternatives to GAAP, and such measures may not be comparable to those reported by other companies.
|
Adjusted net income is derived from GAAP income before applicable income taxes and adjusted for the following items described below:
(1) Represents acquisition and integration costs incurred in connection with our acquisitions, charges related to employee termination benefits and other transition activities. Included in Transition, acquisition and integration costs for the three months and year ended
(2) Below are the adjustments to Other operating costs, General and administrative and Depreciation and amortization.
|
Three Months Ended |
|
Three Months Ended |
||||||||||||||||
|
Transition, Acquisition & Integration |
Share-Based Compensation |
Amortization Of Intangible Assets |
|
Transition, Acquisition & Integration |
Share-Based Compensation |
Amortization Of Intangible Assets |
||||||||||||
Other operating costs |
$ |
23.9 |
|
$ |
- |
|
$ |
- |
|
|
$ |
4.0 |
|
$ |
- |
|
$ |
- |
|
General and administrative |
35.2 |
|
25.8 |
|
- |
|
|
58.2 |
|
12.8 |
|
- |
|
||||||
Depreciation and amortization |
- |
|
- |
|
223.4 |
|
|
- |
|
- |
|
56.3 |
|
||||||
Total adjustments |
$ |
59.1 |
|
$ |
25.8 |
|
$ |
223.4 |
|
|
$ |
62.2 |
|
$ |
12.8 |
|
$ |
56.3 |
|
|
Year Ended |
|
Year Ended |
||||||||||||||||
|
Transition, Acquisition & Integration |
Share-Based Compensation |
Amortization Of Intangible Assets |
|
Transition, Acquisition & Integration |
Share-Based Compensation |
Amortization Of Intangible Assets |
||||||||||||
Other operating costs |
$ |
77.9 |
|
$ |
- |
|
$ |
- |
|
|
$ |
14.8 |
|
$ |
- |
|
$ |
- |
|
General and administrative |
258.8 |
|
124.8 |
|
- |
|
|
115.3 |
|
47.9 |
|
- |
|
||||||
Depreciation and amortization |
- |
|
- |
|
938.4 |
|
|
- |
|
- |
|
217.8 |
|
||||||
Total adjustments |
$ |
336.7 |
|
$ |
124.8 |
|
$ |
938.4 |
|
|
$ |
130.1 |
|
$ |
47.9 |
|
$ |
217.8 |
|
(3) Represents amortization of intangible assets acquired through business combinations and customer portfolio and related asset acquisitions.
(4) See note (2) in Schedule 1.
(5) Represents adjusted income tax expense to reflect an adjusted effective tax rate of 19.8% for 2018 and 34% for 2017, assuming the conversion of the Class B units of
(6) Represents the non-controlling interest, net of adjusted income tax expense discussed in (5) above, associated with a consolidated joint venture.
(7) The adjusted shares outstanding include 10.3 million and 12.7 million weighted-average Class B units that are excluded from the GAAP dilutive net income per share calculation for the year ended December 31, 2018. Additionally, the adjusted shares outstanding include 17.1 million and 27.2 million weighted-average Class B units that are excluded from the GAAP dilutive net income per share calculation for the three months and year ended December 31, 2017, respectively.
Schedule 3
Segment Information
(Unaudited)
(in millions)
Technology Solutions
|
Three Months Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
443.7 |
|
|
$ |
345.1 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
119.6 |
|
|
NM |
|||
Net revenue (1) |
443.7 |
|
|
225.5 |
|
|
97 |
% |
||
Sales and marketing |
113.7 |
|
|
74.6 |
|
|
52 |
% |
||
Segment profit |
330.0 |
|
|
150.9 |
|
|
119 |
% |
|
Year Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
1,601.4 |
|
|
$ |
1,264.5 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
454.9 |
|
|
NM |
|||
Net revenue (1) |
1,601.4 |
|
|
809.6 |
|
|
98 |
% |
||
Sales and marketing |
422.9 |
|
|
277.9 |
|
|
52 |
% |
||
Segment profit |
$ |
1,178.5 |
|
|
$ |
531.7 |
|
|
122 |
% |
Merchant Solutions
|
Three Months Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
516.1 |
|
|
$ |
607.2 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
349.0 |
|
|
NM |
|||
Net revenue (1) |
516.1 |
|
|
258.2 |
|
|
100 |
% |
||
Sales and marketing |
166.9 |
|
|
92.3 |
|
|
81 |
% |
||
Segment profit |
$ |
349.2 |
|
|
$ |
165.9 |
|
|
110 |
% |
|
Year Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
1,976.2 |
|
|
$ |
2,303.1 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
1,325.2 |
|
|
NM |
|||
Net revenue (1) |
1,976.2 |
|
|
977.9 |
|
|
102 |
% |
||
Sales and marketing |
683.7 |
|
|
368.6 |
|
|
85 |
% |
||
Segment profit |
$ |
1,292.5 |
|
|
$ |
609.3 |
|
|
112 |
% |
Issuer Solutions
|
Three Months Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
90.2 |
|
|
$ |
113.6 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
28.3 |
|
|
NM |
|||
Net revenue (1) |
90.2 |
|
|
85.3 |
|
|
6 |
% |
||
Sales and marketing |
5.9 |
|
|
5.5 |
|
|
7 |
% |
||
Segment profit |
$ |
84.3 |
|
|
$ |
79.8 |
|
|
6 |
% |
|
Year Ended December 31, |
|
|
|||||||
|
2018 |
|
2017 |
|
% Change |
|||||
Total revenue |
$ |
347.8 |
|
|
$ |
458.9 |
|
|
NM |
|
Network fees and other costs |
- |
|
|
123.1 |
|
|
NM |
|||
Net revenue (1) |
347.8 |
|
|
335.8 |
|
|
4 |
% |
||
Sales and marketing |
25.1 |
|
|
23.0 |
|
|
9 |
% |
||
Segment profit |
$ |
322.7 |
|
|
$ |
312.8 |
|
|
3 |
% |
(1) See note (1) in Schedule 1.
Schedule 4
Condensed Consolidated Statements of Financial Position
(Unaudited)
(in millions)
|
|
December 31, 2018 |
|
December 31, 2017 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
196.5 |
|
|
$ |
126.5 |
|
Accounts receivable-net |
|
1,694.8 |
|
|
986.6 |
|
||
Settlement assets and merchant float |
|
3,132.3 |
|
|
142.0 |
|
||
Prepaid expenses |
|
80.0 |
|
|
33.5 |
|
||
Other |
|
526.1 |
|
|
84.0 |
|
||
Total current assets |
|
5,629.7 |
|
|
1,372.6 |
|
||
|
|
|
|
|
||||
Property, equipment and software-net |
|
1,074.1 |
|
|
473.7 |
|
||
Intangible assets-net |
|
3,127.8 |
|
|
678.5 |
|
||
|
|
14,137.9 |
|
|
4,173.0 |
|
||
Deferred taxes |
|
789.9 |
|
|
739.5 |
|
||
Proceeds from senior unsecured notes |
|
- |
|
|
1,135.2 |
|
||
Other assets |
|
129.1 |
|
|
94.5 |
|
||
Total assets |
|
$ |
24,888.5 |
|
|
$ |
8,667.0 |
|
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
1,188.7 |
|
|
$ |
631.9 |
|
Settlement obligations |
|
3,723.6 |
|
|
816.2 |
|
||
Current portion of note payable |
|
225.7 |
|
|
107.9 |
|
||
Current portion of tax receivable agreement obligations |
|
73.1 |
|
|
245.5 |
|
||
Deferred income |
|
25.1 |
|
|
18.9 |
|
||
Current maturities of capital lease obligations |
|
22.7 |
|
|
8.0 |
|
||
Other |
|
630.3 |
|
|
6.0 |
|
||
Total current liabilities |
|
5,889.2 |
|
|
1,834.4 |
|
||
Long-term liabilities: |
|
|
|
|
||||
Note payable |
|
7,622.1 |
|
|
5,586.4 |
|
||
Tax receivable agreement obligations |
|
590.8 |
|
|
535.0 |
|
||
Capital lease obligations |
|
34.3 |
|
|
4.5 |
|
||
Deferred taxes |
|
473.7 |
|
|
65.6 |
|
||
Other |
|
74.4 |
|
|
40.5 |
|
||
Total long-term liabilities |
|
8,795.3 |
|
|
6,232.0 |
|
||
Total liabilities |
|
14,684.5 |
|
|
8,066.4 |
|
||
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Total equity (1) |
|
10,204.0 |
|
|
600.6 |
|
||
Total liabilities and equity |
|
$ |
24,888.5 |
|
|
$ |
8,667.0 |
|
|
(1) Includes equity attributable to non-controlling interests.
Schedule 5
Consolidated Statements of Cash Flows
(Unaudited)
(in millions)
|
Year Ended |
||||||
|
December 31, 2018 |
|
December 31, 2017 |
||||
Operating Activities: |
|
|
|
||||
Net income |
$ |
19.6 |
|
|
$ |
182.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
1,095.0 |
|
|
318.5 |
|
||
Amortization of customer incentives |
27.4 |
|
|
24.3 |
|
||
Amortization and write-off of debt issuance costs |
69.6 |
|
|
6.0 |
|
||
Gain on foreign currency forward |
(35.9 |
) |
|
(33.1 |
) |
||
Share-based compensation expense |
124.8 |
|
|
47.9 |
|
||
Deferred tax (benefit) expense |
(91.1 |
) |
|
596.8 |
|
||
Tax receivable agreements non-cash items |
(3.0 |
) |
|
(421.7 |
) |
||
Other |
20.9 |
|
|
4.0 |
|
||
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
(172.3 |
) |
|
(38.9 |
) |
||
Net settlement assets and obligations |
63.0 |
|
|
25.3 |
|
||
Prepaid and other assets |
(64.7 |
) |
|
(25.7 |
) |
||
Accounts payable and accrued expenses |
(141.0 |
) |
|
130.5 |
|
||
Other liabilities |
24.0 |
|
|
(31.8 |
) |
||
Net cash provided by operating activities |
936.3 |
|
|
784.8 |
|
||
Investing Activities: |
|
|
|
||||
Purchases of property and equipment |
(304.9 |
) |
|
(110.8 |
) |
||
Acquisition of customer portfolios and related assets and other |
(74.4 |
) |
|
(41.8 |
) |
||
Purchase of interest rate caps |
(8.1 |
) |
|
- |
|
||
Proceeds from foreign currency forward |
71.5 |
|
|
- |
|
||
Cash acquired (used) in acquisitions, net of cash used |
1,389.6 |
|
|
(531.5 |
) |
||
Net cash provided by (used in) investing activities |
1,073.7 |
|
|
(684.1 |
) |
||
Financing Activities: |
|
|
|
||||
Proceeds from issuance of long-term debt |
2,951.8 |
|
|
1,270.0 |
|
||
Proceeds from issuance of senior unsecured notes |
- |
|
|
1,135.2 |
|
||
Borrowings on revolving credit facility |
4,076.0 |
|
|
8,442.0 |
|
||
Repayment of revolving credit facility |
(4,251.0 |
) |
|
(8,217.0 |
) |
||
Repayment of debt and capital lease obligations |
(2,835.1 |
) |
|
(143.7 |
) |
||
Payment of debt issuance costs |
(91.1 |
) |
|
(27.6 |
) |
||
Proceeds from issuance of Class A common stock under employee stock plans |
23.8 |
|
|
14.5 |
|
||
Purchase and cancellation of Class A common stock |
- |
|
|
(1,268.0 |
) |
||
Repurchase of Class A common stock (including to satisfy tax withholding obligations) |
(176.6 |
) |
|
(10.1 |
) |
||
Settlement of and payments under certain tax receivable agreements |
(196.0 |
) |
|
(140.3 |
) |
||
Distribution to non-controlling interests |
(10.5 |
) |
|
(22.6 |
) |
||
Net cash (used in) provided by financing activities |
(508.7 |
) |
|
1,032.4 |
|
||
Net increase in cash and cash equivalents |
1,501.3 |
|
|
1,133.1 |
|
||
Cash and cash equivalents-Beginning of period |
1,272.2 |
|
|
139.1 |
|
||
Effect of exchange rate changes on cash |
(192.2 |
) |
|
- |
|
||
Cash and cash equivalents-End of period |
$ |
2,581.3 |
|
|
$ |
1,272.2 |
|
Cash Payments: |
|
|
|
||||
Interest |
$ |
302.9 |
|
|
$ |
123.1 |
|
Income taxes |
29.4 |
|
|
45.8 |
|
||
Non-cash Items: |
|
|
|
||||
Issuance of tax receivable agreements to related parties |
$ |
120.9 |
|
|
$ |
647.5 |
|
Reconciliation of cash and cash equivalents to the Condensed Consolidated Statement of Financial Position
|
Year Ended |
||||||
|
December 31, 2018 |
|
December 31, 2017 |
||||
Cash and cash equivalents on the Condensed Consolidated Financial Statements |
$ |
196.5 |
|
|
$ |
126.5 |
|
Proceeds from senior unsecured notes |
- |
|
|
1,135.2 |
|
||
Other restricted cash (in other current assets) |
482.1 |
|
|
10.5 |
|
||
Merchant float (in settlement assets and merchant float) |
1,902.7 |
|
|
- |
|
||
Total cash and cash equivalents on the Consolidated Statement of Cash Flows |
$ |
2,581.3 |
|
|
$ |
1,272.2 |
|
Schedule 6
Reconciliation of GAAP Net Income to Adjusted EBITDA
(Unaudited)
(in millions)
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||||||||||||
|
|
December 31, |
|
December 31, |
|
|
|
December 31, |
|
December 31, |
|
|
||||||||||
|
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
||||||||||
Net income (loss) |
|
$ |
115.8 |
|
|
$ |
(46.4 |
) |
|
NM |
|
$ |
19.6 |
|
|
$ |
182.7 |
|
|
(89 |
)% |
|
Income tax (benefit) expense(1) |
|
(22.7 |
) |
|
547.5 |
|
|
NM |
|
(27.7 |
) |
|
631.0 |
|
|
NM |
||||||
Non-operating expense (income)(2) |
|
7.7 |
|
|
(419.1 |
) |
|
NM |
|
41.8 |
|
|
(432.8 |
) |
|
NM |
||||||
Interest expense-net |
|
74.6 |
|
|
43.2 |
|
|
73 |
% |
|
304.9 |
|
|
140.6 |
|
|
117 |
% |
||||
Share-based compensation |
|
25.8 |
|
|
12.8 |
|
|
102 |
% |
|
124.8 |
|
|
47.9 |
|
|
161 |
% |
||||
Transition, acquisition and integration costs(3) |
|
59.1 |
|
|
62.2 |
|
|
(5 |
)% |
|
336.7 |
|
|
130.1 |
|
|
159 |
% |
||||
Depreciation and amortization |
|
271.0 |
|
|
81.5 |
|
|
233 |
% |
|
1,095.0 |
|
|
318.5 |
|
|
244 |
% |
||||
Adjusted EBITDA |
|
$ |
531.3 |
|
|
$ |
281.7 |
|
|
89 |
% |
|
$ |
1,895.1 |
|
|
$ |
1,018.0 |
|
|
86 |
% |
Non-GAAP Financial Measures
This schedule presents adjusted EBITDA, which is an important financial performance measure for the Company, but is not a financial measure as defined by GAAP. Such financial measure should not be considered as an alternative to GAAP net income, and such measure may not be comparable to those reported by other companies.
|
(1) See note (3) in Schedule 1.
(2) See note (2) in Schedule 1.
(3) See notes (1) and (2) in Schedule 2.
Schedule 7
Outlook Summary
(Unaudited)
|
First Quarter Financial Outlook |
|
Full Year Financial Outlook |
||||||||
|
Three Months Ended March 31, |
|
Year Ended December 31, |
||||||||
|
2019 Outlook |
|
2018 Actual(1) |
|
2019 Outlook |
|
2018 Actual(1) |
||||
GAAP net income per share attributable to |
$0.01 - $0.08 |
|
$ |
(0.36 |
) |
|
$1.00 - $1.50 |
|
$ |
0.04 |
|
Adjustments to reconcile GAAP to non-GAAP adjusted net income per share(2) |
$0.86 - $0.82 |
|
$ |
1.17 |
|
|
$3.50 - $3.10 |
|
$ |
4.01 |
|
Adjusted net income per share |
$0.87 - $0.90 |
|
$ |
0.81 |
|
|
$4.50 - $4.60 |
|
$ |
4.05 |
|
Non-GAAP and Adjusted Financial Measures
This schedule presents non-GAAP and adjusted financial measures, which are important financial performance measures for the Company, but are not financial measures as defined by GAAP. Such financial measures should not be considered as alternatives to GAAP, and such measures may not be comparable to those reported by other companies.
|
(1) Excludes
(2) 2019 represents an estimated range of adjustments for the following items: (a) integration costs incurred in connection with our prior acquisitions, charges related to employee termination benefits resulting from acquisition integration and other transition activities; (b) share-based compensation; (c) amortization of acquired intangible assets and customer portfolio and related asset acquisitions; (d) non-operating expense/income (f) adjustments to income tax expense to reflect the tax effect of adjustments described above, tax benefits due to the amortization of intangible assets and other tax attributes resulting from or acquired with our acquisitions, the tax basis step up associated with our separation from
2018 includes adjustments for the following items: (a) acquisition and integration costs incurred in connection with our acquisitions, charges related to employee termination benefits resulting from acquisition integration and other transition activities; (b) share-based compensation; (c) amortization of acquired intangible assets and customer portfolio and related asset acquisitions; (d) non-operating expense/income (f) adjustments to income tax expense to reflect the tax effect of adjustments described above, adjustments to deferred taxes and the TRA liability both resulting from US tax reform, adjustments to the TRA liability tax benefits due to the amortization of intangible assets and other tax attributes resulting from or acquired with our acquisitions, the tax basis step up associated with our separation from
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the